Core News Facts
Tesla experienced its first decline in car sales in 12 years in 2024, with a drop of 1.8 million units from 2023, contributing to total revenue falling to $7.1 billion from $15 billion in the previous year. This downturn was linked to CEO Elon Musk’s political activities, which have reportedly cost the company an estimated 1.26 million vehicle sales since 2022, particularly affecting blue counties where sales sharply declined.
In the fourth quarter of 2024, Tesla recorded an 8% decrease in year-over-year car sales, and a further 20% decline in Q1 2025 as Musk became a prominent figure in the Trump administration. Despite a 67% revenue increase and 43% rise in net income over Musk’s political tenure, the overall brand damage appears substantial, with analysts suggesting Tesla could lose half of its annual earnings due to unfavorable policies.
